Abstract

Facts and figures from the 2014 UPS Sustainability Report

Innovation

Today, our fleet includes approximately 5,800 alternative fuel and advanced technology vehicles (number was more than 5,000 at the end of 2014). We increased the total number of alternative fuel and advanced technology vehicles by 61 percent over 2013, including more than 1,100 natural gas vehicles added in 2014 to nearly double our natural gas fleet.

We logged more than 154 million miles with our alternative fuel and advanced technology fleet in 2014 – an almost threefold increase from 2013. We now have logged 505 million miles toward our goal of driving 1 billion alternative fuel and advanced technology miles by the end of 2017.

We are on track to reduce our annual use of gasoline and diesel 12 percent by the end of 2017. In 2014, we replaced the purchase of 25 million gallons of fossil fuels (5.4 percent of UPS’s annual purchase) with alternative fuels including natural gas, propane, ethanol, biomethane, renewable diesel, and electricity.

Through the end of 2014, we invested in 23 LNG and CNG fueling operations across 10 states.

The rollout of UPS’s innovative technology ORION – On-Road Integrated Optimization and Navigation system – is ahead of schedule. Twenty-three thousand U.S. drivers now use the system to select the most efficient delivery route and we expect to reach full deployment in the U.S. by the end of 2016. In 2014, drivers with ORION deployed realized a reduction of six to eight miles per route, resulting in lower fuel use and related vehicle emissions. By the end of 2016, ORION will help us reduce miles driven by 100 million miles a year, saving 10 million gallons of fuel, which translates into 100,000 metric tonnes in CO2 emission avoided each year.

Despite a 6.8 percent increase in package volume globally driven by e-commerce, we held our absolute GHG emissions to a 3.3 percent growth rate, when comparing 2014 to 2013.

We completed modifications to our B767-300 fleet with customized “winglets” to reduce drag and increase fuel efficiency. This improves average fuel efficiency approximately 3.7 percent per flight on all 59 aircraft in the fleet and translates into a reduction of 8.4 million gallons of fuel and 80,000 metric tonnes of GHG emissions annually.

Improved engine-washing practices for our air fleet saved more than 2.5 million gallons of fuel in 2014 to avoid nearly 24,000 metric tonnes of CO2 emissions — almost four times the amount saved and avoided in 2008.

We improved our air fleet’s ATM CO2 Pounds Emitted per Available Ton Mile (ATM) by 11.6 percent, as measured against a 2005 baseline, moving from 1.54 CO2 pounds per available ton mile to 1.37 in 2014.

We avoided 281 million minutes of idling time in 2014, equivalent to 2 million gallons of fuel and 19,000 metric tonnes of CO2.

Social and Philanthropic

This year, we pledged to log 20 million volunteer hours by the end of 2020, which translates to nearly a half-billion dollars in economic impact to nonprofit organizations around the world. Our employees and retirees, friends and families have logged 7.2 million volunteer hours since 2011.

In 2014, we coordinated more than 263 humanitarian relief shipments of food, health and emergency goods in 43 countries and $8 million in funding and in-kind technical support for community safety initiatives focused on enhancing disaster response, recovery, and emergency preparedness.

We planted 3 million trees around the world throughout 2014 to help offset emissions and improve lives with our UPS Global Forestry Initiative.

By the end of 2014, The UPS Foundation and UPS employees contributed $104.2 million in total charitable contributions and United Way donations, an increase of $2.2 million over 2013.

This past year, more than 4,400 employees signed up to be UPS Sustainability Ambassadors, environmental advocates who encourage other employees to learn, share insights, and take action toward meaningful results on behalf of the environment.

The UPS Foundation provided nearly $4 million for environmental sustainability in 2014.

This year, we advanced our commitment to hiring 50,000 military veterans over the next five years, as part of the White House’s Joining Forces program. Since launching our veteran initiative in 2011, we have increased the number of veterans hired annually by 73 percent.

Reporting and Recognition

This is the company’s 13th annual Corporate Sustainability Report.

UPS was one of the first U.S. companies to transition to the Global Reporting Initiative (GRI) G4 framework and report at a “comprehensive” level, the most rigorous option available. We fulfilled the comprehensive disclosure requirements to receive the new GRI Content Index Service icon award.

We earned a perfect score of 100 in the CDP Climate Disclosure Leadership Index’s Global 500. This is the fourth consecutive year in which we have scored among the highest marks for voluntary carbon disclosure.

UPS was selected as a constituent of the Dow Jones Sustainability World Index for the second consecutive year and was included on the North America Index for the 10th consecutive year.

The contents of UPS’s Sustainability report was assured for the sixth straight year by Deloitte & Touche LLP.

UPS’s global Statement of Greenhouse Gas Emissions was verified to a reasonable level of assurance by both Deloitte & Touche LLP and Société Générale de Surveillance (SGS).

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